Tax rates & dates 2026/27
Corporation tax, dividends, NI, VAT, capital allowances, Self Assessment and Companies House — for companies, directors and the self-employed, with the GOV.UK source beside every table.
Every figure verified against live GOV.UK pages on 5 July 2026. Updated each April and after fiscal events.
Corporation Tax
Financial year from 1 April 2026
| Small profits rateProfits up to £50,000 | 19% |
| Main rateProfits over £250,000 | 25% |
| Marginal reliefEffective marginal rate 26.5% in the band | Between £50,000 and £250,000 — standard fraction 3/200 |
| Payment deadline | 9 months + 1 day after the accounting period ends |
Source: GOV.UK — Corporation Tax rates
Dividend tax — note the new rates
From 6 April 2026
Budget 2025 raised the ordinary and upper dividend rates by 2 percentage points from 6 April 2026 — many references still show the old 8.75% and 33.75%. The live GOV.UK figures for 2026-27 are below. If your salary-vs-dividend split was optimised under the old rates, it deserves a fresh look.
| Dividend allowance | £500 |
| Basic rateWas 8.75% in 2025-26 | 10.75% |
| Higher rateWas 33.75% in 2025-26 | 35.75% |
| Additional rateUnchanged | 39.35% |
Source: GOV.UK — tax on dividends
Income tax & NI — directors and employees
2026-27 (England, Wales & NI bands; Scotland differs)
| Personal allowanceFrozen — maintained until 5 April 2031 per Budget 2025 | £12,570 |
| Basic rate | 20% on £12,571 – £50,270 |
| Higher rate | 40% on £50,271 – £125,140 |
| Additional rate | 45% above £125,140 |
| Employee NI (Class 1) | 8% between £242 and £967/week, 2% above |
| Employer NI | 15% above £5,000/year (Secondary Threshold) |
| Employment AllowanceNot available to companies whose only paid employee is the director | £10,500 |
Source: GOV.UK — Income Tax rates
Self-employed NI
2026-27
| Class 2Voluntary at £3.65/week below that to protect State Pension | Treated as paid above £7,105 profits — nothing to pay |
| Class 4 | 6% on profits £12,570 – £50,270, 2% above |
Source: GOV.UK — self-employed NI rates
VAT
Current
| Registration threshold | £90,000 taxable turnover (rolling 12 months) |
| Deregistration threshold | £88,000 |
| Making Tax Digital | Applies to all VAT-registered businesses, no threshold |
Source: GOV.UK — VAT registration
Capital allowances — two 2026 changes
2026 changes highlighted
Two changes most guides haven’t caught up with: a NEW 40% first-year allowance for main-rate plant and machinery applies to expenditure from 1 January 2026 (and unlike full expensing it covers leased assets and unincorporated businesses — though not cars or second-hand assets), while the main-rate writing-down allowance drops from 18% to 14% from April 2026.
| Annual Investment Allowance | £1 million — 100% on most plant & machinery |
| Full expensing50% FYA for special-rate assets | 100% first-year deduction, companies only |
| NEW 40% first-year allowanceIncludes leasing + unincorporated businesses; excludes cars and second-hand | Main-rate P&M expenditure from 1 January 2026 |
| Writing-down allowance (main rate)Was 18%. Special rate stays 6% | 14% from April 2026 |
Source: GOV.UK — new FYA and WDA changes
Self Assessment dates
Current cycle
| Register for Self Assessment | By 5 October after the end of the tax year you need to file for |
| Paper return | 31 October |
| Online return + balancing payment | 31 January |
| Payments on accountNot due if last bill was under £1,000 or over 80% was deducted at source | 31 January and 31 July — each half of last year’s bill |
Companies House — verification is now law
IDV in force since 18 November 2025
Identity verification became a legal requirement on 18 November 2025 — directors and PSCs verify and supply their personal code (existing directors at their next confirmation statement; PSCs within a 14-day window). Separately, the small-company accounts reform (profit & loss filing for small and micro companies, software-only filing, abridged accounts abolished) was DELAYED from April 2027 to April 2028, announced 9 June 2026 — copy citing 2027 is now out of date.
| Identity verificationIn force since 18 November 2025 | Mandatory — directors, PSCs and ACSPs |
| Confirmation statement£50 online / £110 paper | At least one per 12-month review period, filed within 14 days |
| First accounts | 21 months after incorporation; then 9 months after each year end |
| Company Tax Return | 12 months after the accounting period ends |
| Accounts reform | From April 2028 (delayed from 2027): small + micro companies file P&L; software-only filing; abridged accounts abolished |
Source: GOV.UK — verifying your identity for Companies House
Income tax bands shown are for England, Wales and Northern Ireland — Scotland sets its own. Reference only, not tax advice; confirm against the linked GOV.UK page before relying on any figure. See also: MTD for Income Tax from April 2026.
Quick answers
What are the dividend tax rates for 2026-27?
Higher than most people remember: 10.75% at basic rate and 35.75% at higher rate — both up 2 percentage points from 6 April 2026 under Budget 2025 — with the additional rate unchanged at 39.35% and the allowance still £500. Salary-vs-dividend splits optimised under the old rates are worth revisiting.
What is the corporation tax rate for 2026?
Unchanged: 19% on profits up to £50,000, 25% over £250,000, with marginal relief tapering between the two (standard fraction 3/200 — an effective 26.5% on profits inside the band).
What changed for capital allowances in 2026?
Two things: a new 40% first-year allowance applies to main-rate plant and machinery bought from 1 January 2026 — notably including leased assets and unincorporated businesses — and the main-rate writing-down allowance fell from 18% to 14% from April 2026. The AIA (£1m) and full expensing for companies continue.
What is the VAT registration threshold?
You must register when taxable turnover passes £90,000 in any rolling 12-month period (deregistration at £88,000). Every VAT-registered business is in Making Tax Digital for VAT — there is no separate MTD threshold.
When do these figures change next?
Most rates move at the start of the tax year in April, after the autumn fiscal statement. Already announced for April 2027: savings and property income tax rates rise to 22%/42%/47%. This page is refreshed every April and after fiscal events — each table links the GOV.UK source so you can verify anything instantly.
Books that already know the rates.
Blankitt Finance applies current rates across VAT returns, the corporation-tax calendar and the HMRC Capital Allowances helper — from £14/mo, every feature on every tier.